Direct answer: A federal bank fraud charge begins with 18 U.S.C. § 1344. The prosecution must prove a knowing execution, or attempted execution, of a scheme covered by one of its two clauses. Clause (1) concerns a scheme to defraud a financial institution. Clause (2) concerns obtaining money or other property that the institution owns, holds, or controls through false or fraudulent representations. Read the clause named in the charge before drawing conclusions about what prosecutors must prove.

Suppose an employee sends a lender an application with a false attachment. Who created it? Did the person who sent it know it was false? Permission to use the company account does not answer either question. The actual file and its history may tell a different story from a printed copy bearing someone’s name.

The bank’s place in the transaction also needs attention. In Loughrin v. United States, the Supreme Court held that clause (2) does not require an intent to defraud the bank itself. But the deception must be a means of obtaining bank property. It is not enough to point to an unrelated lie and a payment involving a bank.

Shaw v. United States addresses a different issue under clause (1): a bank can have a property interest in funds deposited by a customer. If someone uses stolen account information, saying that the customer was the intended victim does not by itself defeat a bank fraud charge. Counsel still needs to examine the accused person’s knowledge and intent, as well as the institution’s status under federal law at the time alleged.

Proof audit: Find the transaction named in the indictment. For an application submitted to a lender, look for the following records:

• The email used to submit the application, with the application and attachments still included.
• The account agreement and the lender’s decision on the application, if available.
• Account entries for the payment in question, showing its date, sender, and recipient.
• Any available record of the institution’s insurance or charter.

A missing record belongs on the list too. Tell counsel what you have and where the rest may be held; do not try to obtain records through an account you are not entitled to access.

Ask who can explain each record. A loan officer may know what the bank received before approving an application. An investigator brought in after a default may know how the bank calculated its loss. Neither necessarily knows what the other saw. A loss figure alone does not establish who made a false statement or what that person knew.

Advanced analysis: An indictment may charge several executions of a scheme under one or both clauses. For each count, make a note of the event alleged, its date, and the statutory clause. An application submitted in March and a credit-line draw made in June would need separate entries if the government charges them separately.

Put the alleged execution dates next to the count numbers. Counsel can then assess whether a count falls outside the applicable limitations period. Before trial, compare the proposed jury instructions with that same list. The instructions must address the charged theory and any applicable requirement that the jury agree on the factual basis for conviction.

If counsel brings you a proposed plea, ask to go through its factual statement together. A plea to one count can include admissions about other transactions. Find out which transactions the statement covers and how they might affect the sentence or restitution. Mark anything you dispute for discussion with counsel before agreeing to it.

Read the official bank fraud statute.